KILGORE COLLEGEKILGORE COLLEGEFINANCIAL AID WORKSHOPFINANCIAL AID WORKSHOP

The “A, B, C’s” of

Financial Aid

Presented By:

Annette Morgan Financial Aid Officer

Main Financial Aid SourcesMain Financial Aid Sources

Federal Government

State of Texas

Institution or College

Civic or Private Groups

STUDENT AID CATEGORIESSTUDENT AID CATEGORIES

GRANTS o Department of Educationo State of Texas

LOANSo Department of Education (Federal)

EMPLOYMENTo College Work Study (Federal)o Institutional Position

SCHOLARSHIPS

GRANTSGRANTS

Funds for Education

Do not have to be repaid

Awarded on financial

“need” basis

MAIN SOURCES

• Dept. of Education

• State of Texas

LoansLoans

Funds students & parents borrow to help with educational expenses

Repayment begins after graduation Minimum Enrollment: 6 hours May be “need or non-need” based An investment in a student’s future Caution: Only borrow funds that are

actually needed – (not just desired)!!!

EmploymentEmployment

Allows student to earn money to help pay educational costs

Usually need-based

May be funded by the U.S. Dept. of Education or the State of Texas

May open the door to future employment, as references will be given on student’s performance

ScholarshipsScholarships

Money that does not have to be paid back to the institution or donor

Sources may include the institution, or “outside agencies” (service clubs, church)

Awarded on the basis of merit, skill or other unique characteristics

Usually require full-time enrollment and a higher academic standard (2.5 to 3.0 gpa)

May be need or non-need based

General Eligibility RequirementsGeneral Eligibility Requirements

Be enrolled as a regular student in a degree or certificate program

Be registered with Selective Service, if required

Not be simultaneously enrolled in high school

Provide valid Social Security Number

Have high school diploma or equivalent, or demonstrate ability to benefit

Be a citizen, national, or permanent resident of U.S., or other eligible non-citizen.

FAFSAFAFSAFree Application for Federal Student AidFree Application for Federal Student Aid

First Step in the Financial Aid Process Students may qualify for Federal aid such

as - Work Study, Grants, and Loans

States and Schools use information from the FAFSA to award non-Federal aid such as

- Scholarships, State Grants, and credit -

based Private Loans

FAFSA Priority DeadlinesFAFSA Priority Deadlines

Deadlines are usually determined by each State

In Texas, each school sets its own priority deadline

- Apply in January to make

most deadlines for Texas

colleges and universities.

Institutional VerificationInstitutional Verification

Confirms accuracy of FAFSA information

Application selected at random by CPS

Often occurs if information is incomplete or

questionable

School may request any document necessary to

complete the verification process

Prepare copies for the school, as your originals will

not be returned

School is required to verify if selected

Common Documents Common Documents

BE PREPARED TO FURNISH:• Tax Return(s) and W-2(s) – Prior year• Child Support Received or Paid• Social Security Benefits• Welfare Benefits-excluding food stamps• Housing, Food or other Living allowances

paid to military, clergy,etc• Worker’s Compensation• Current Checking/Savings Balance• Investment, Business and/or Investment

Farm Value

WHAT DOES THE COLLEGE DO WHAT DOES THE COLLEGE DO WITH THE FAFSA DATA ?WITH THE FAFSA DATA ?

Uses the data to create financial “need” and set up the cost of attendance

From this, the student’s aidpackage is created for the academic year

Need AnalysisNeed Analysis

Income

Asset equity

Family size

Number in college

• Not to include parents

Definition of NeedDefinition of Need

Cost of Attendance (COA)– Expected Family Contribution (EFC)= Financial Need

Cost of AttendanceCost of Attendance

Tuition and fees Room and board (at home with parents,

in dorm or off campus)

Books and supplies Transportation Personal expenses Miscellaneous expenses

5

Expected Family ContributionExpected Family Contribution

(EFC) calculated using Fafsa data and a federal formula

The amount a family can reasonably be expected to contribute

Stays the same regardless of collegeof choice

Considers household income & size, assets, & number of family in college

Two components: Parent Contribution Student Contribution

1

Need Varies Based on Cost

23 EFC EFC

12

Cost of Attendance

(Variable)

Expected Family

Contribution

(Constant)

Need

(Variable)- =

3

Need Based Aid Need Based Aid

SCHOOL ACost of Attendance $12,000- Exp. Family Contribution $ 1,000

Financial Need $11,000

SCHOOL BCost of Attendance $20,000- Exp. Family Contribution $ 1,000

Financial Need $19,000

Community College PackageCommunity College Package

Budget (COA) $12,000- Expected Family Contribution (EFC) 1,000Need $ 11,000

Federal Pell Grant $ 4,400Texas Grant $ 1,780Scholarship $ 1,000Stafford Loan $ 3,500

Subtotal $ 10,680

Unmet Need $ 320

Public University PackagePublic University Package

Budget (COA) $22,000- Expected Family Contributions (EFC) 1,000

Need $21,000

Federal Pell Grant $4,400Texas Grant $2,960Federal Sub Stafford Loan $3,500Federal Unsub Stafford Loan $2,000Institutional Scholarship $4,000Subtotal $16,860

Unmet Need $ 4,140

Private College PackagePrivate College Package

Budget (COA) $40,000 - Expected Family Contribution (EFC) 1,000

Need

$39,000

Federal Pell Grant $4,400TEG

$2,500Federal Stafford Loan

$3,500Federal Unsub Loan $2,000Federal PLUS Loan $10,000Institutional Scholarship $10,000Subtotal

$32,400

Unmet Need $ 6,600

Evaluating Aid PackagesEvaluating Aid Packages

Biggest is not always the best

Are cost estimates realistic?

Renewable vs. non-renewable scholarships

What are terms and conditions of offered loan(s)

Grant/loan balance

Balance of aid offered

• What percentage is offered of grant aid?• Loan aid?• Institutional scholarships?

Common ErrorsCommon Errors

INCOMPLETE APPLICATIONS - Most errors are caused by the student providing inaccurate or incomplete data on FAFSA (make a copy)

Not meeting required deadlines

Not submitting all required documents

No Admission Application and Official Transcripts on file in Registrar’s Office

Not returning Signed Award Letter by stated deadline

Federal Financial Aid ProgramsFederal Financial Aid Programs

• Federal Pell Grant - Largest Grant Program

Not repaid unless student withdraws (09-10 - $5350)

• Fed. Academic Competitiveness Grant

Awarded to Honors Graduates ( 09-10 - $750)

Must be Pell Eligible, and Maintain 3.0 gpa

• Federal SEOG Grant - Supplements Pell for Students with exceptional Need (Max 1000)

• Federal Work Study – Work Program for eligible students to work on campus and earn

federal funds (Amounts Vary)

Subsidized (DOE pays interest)Max: $3,500/yr - 1st yr (Freshman Student)Max: $4,500 /yr - 2nd yr (Sophomore Student)

Unsubsidized (interest accrues) Same amounts as shown above, if not qualified for the

Subsidized Loan Dependent: $2000/yr - 1st/2nd yr (if needed)

PLUS (Parent Loan for U. Student) Interest accrues & Credit BasedRepayment begins: 60 days after last disbur.

Federal Stafford Loan ProgramFederal Stafford Loan Program(Requirement: Min. of 6 hrs. enrolled per Loan)(Requirement: Min. of 6 hrs. enrolled per Loan)

Facts about Stafford LoansFacts about Stafford Loans

On Sub & UnSubsidized, there is a 6-month “Grace Period” after Graduation

On PLUS, no “Grace Period” After “Grace” repayment begins Interest Rates:

o Subsidized = 5.6% over 10 yrs repaymento Un-Subsidized = 6.8% over 10 yrs. repaymento PLUS = 8.5% over the life of the loan

Reenrollment will stop repayment, however, interest will still accrue

State of Texas FundsState of Texas Funds

Texas Grant – (Toward Excellence, Access and Success)

Texas Public Education Grant – (TPEG) Texas Educ. Opportunity Grant –

(TEOG) Tuition Exemptions Professional Nursing Scholships Vocational Nursing Scholarships

Satisfactory Academic ProgressSatisfactory Academic Progress

All Financial Aid categories will have a minimum SAP standard

Academic Progress evaluated by school on a semester or annual basis

Students must make a minimum GPA & complete a % of enrollment to continue to receive all forms of financial aid

Scholarships will carry higher minimum requirements, depending on the award

Check with your school’s financial aid office and pay attention to grades and attendance!

Numbers to RememberNumbers to Remember

Department of Education• (800) 433-3243

TX Higher Education Coordinating Board• (800) 242-3062

TX Financial Aid Information Center• (888) 311-8881

Kilgore College Financial Aid Office• (903) 983-8211

World Wide WebWorld Wide Web

ed.gov/studentaid

fastaid.org

AIE.org

fafsa.ed.gov

collegeforalltexans.com

finaid.org

applytexas.org

Pay Attention!Pay Attention!

Review each school’s catalogs/website for information and application procedures

Accurately complete and submit correct forms and respond promptly to requests

Know each school’s deadlines and most importantly……MEET THEM

Keep copies of all forms yousubmit for your records - and

Good Luck in 2010-11!!